Here’s what’s happening right now with the US TikTok deal

TikTok, the popular social media platform owned by Chinese company ByteDance, has been embroiled in controversy in the United States for the past four years. The main issue revolves around concerns that user data could be accessed by the Chinese government, placing American users in a precarious position amidst geopolitical tensions. Earlier this year, the app faced a temporary outage in the U.S., leaving millions of users anxious until service was swiftly restored. In February, TikTok made its comeback to the App Store and Google Play Store, but the platform continues to be under scrutiny as various investors vie for a chance to acquire it. If a sale goes through, analysts project that TikTok's U.S. business could be valued at over $60 billion, according to Angelo Zino, a senior vice president at CFRA Research. Following extensive negotiations and multiple extensions of a potential TikTok ban by former President Trump, there appears to be progress on a deal. Recently, Trump announced that Chinese President Xi has approved a TikTok arrangement that could see a consortium of American investors take control of the platform. ByteDance has committed to ensuring that TikTok remains accessible to users in the U.S. Reports suggest that a framework for a deal has been established, with a consortium including Oracle, Silver Lake, and Andreessen Horowitz expected to manage TikTok's U.S. operations. This group is anticipated to hold an 80% stake, while Chinese stakeholders would retain the remaining shares. The board of the new entity would primarily consist of U.S. members, with one appointment made by the U.S. government. In a recent interview, Trump hinted that media mogul Rupert Murdoch and his son Lachlan may have roles in this deal, alongside executives from Oracle and Dell Technologies. Oracle is likely to oversee the platform's security, as it already provides cloud services for TikTok and manages user data within the U.S. As part of the proposed agreement, Oracle plans to create and secure a new U.S. version of TikTok's algorithm, with ByteDance being barred from accessing information about American users or influencing the U.S. algorithm. However, reports from Bloomberg suggest that once the deal is finalized, the existing TikTok app may be phased out in the U.S., requiring users to transition to an entirely new platform, the specifics of which are still unclear. To fully grasp this ongoing saga, one must look back at TikTok's fraught history with the U.S. government. The tumult began in August 2020 when Trump signed an executive order to ban transactions with ByteDance. Following this, the Trump administration aimed to enforce a sale of TikTok’s U.S. operations to an American company, with major contenders including Microsoft and Oracle. Despite a temporary court ruling that allowed TikTok to continue operating while legal battles unfolded, the situation took a turn with the Biden administration. After the Senate passed a bill targeting TikTok, Biden signed it into law, leading to a legal challenge from TikTok, which argued that the government’s actions violated the First Amendment rights of the app and its users. As the landscape evolves, Trump has shifted his stance, now aiming for a 50-50 ownership model between ByteDance and a U.S. company. Various groups have emerged to pursue the acquisition, including The People’s Bid for TikTok, backed by notable figures like Reddit co-founder Alexis Ohanian and TV personality Kevin O’Leary. Another consortium, the American Investor Consortium, is led by Employer.com founder Jesse Tinsley and includes high-profile investors from diverse backgrounds. As this complex narrative continues to unfold, the stakes remain high for TikTok and its millions of users in the United States.